Wema Bank’s Profit Before Tax Skyrockets 135% in 2024, Announces Dividend, Capital Raise

Lagos, Nigeria – Wema Bank Nigeria has announced a remarkable financial performance for the fiscal year 2024, revealing a 135% surge in profit before tax (PBT), reaching ₦102.51 billion.

This impressive growth, detailed in the bank’s audited Consolidated Financial Statements submitted to the Nigerian Exchange Group (NGX), has prompted the bank to propose a dividend of ₦1.00 per share.

The bank’s financial results demonstrate significant expansion across key metrics. Total assets witnessed a 60% increase, climbing to ₦3,585.05 billion from ₦2,240.06 billion in 2023. The deposit base also expanded by 36% to ₦2,523.82 billion, while loans and advances grew by 50% to ₦1,201.21 billion. The bank reported a non-performing loan (NPL) ratio of 3.86% at the end of 2024.

Wema Bank’s gross earnings experienced a 92% year-on-year growth, reaching ₦432.34 billion. This surge was attributed to increases in both interest income and non-interest income, which also rose by 92% and 91%, respectively. The bank’s financial strength was further highlighted by a return on equity (ROAE) of 43.60%, a return on assets (ROAA) of 2.96%, a capital adequacy ratio (CAR) of 19.67%, and an improved cost-to-income ratio of 56.23%.

Mr. Moruf Oseni, Managing Director/CEO of Wema Bank, attributed the bank’s exceptional performance to its strategic focus on risk management, customer relationship management, and digital banking initiatives.

“Our people are committed to the institution’s founding ethos of supporting Nigerian businesses and individuals with the most innovative banking products and services,” Oseni stated, highlighting the success of their digital platform, ALAT.

“ALAT, our flagship digital platform continues to lead in the adoption of digital banking services across the increasingly young Nigerian populace.” He also pointed to the launch of ALAT XPlore, a dedicated banking app for teenagers.

Oseni acknowledged the challenging operating environment but emphasized the bank’s robust growth across all financial indicators. “The performance is headlined by impressive improvements in Profit before Tax which grew strongly by 135%. The growth of Gross Earnings by 92%, Total Assets by 60% and earnings per share at 483.20kobo shows the core improvements to our balance sheet,” he said.

Looking ahead, Oseni announced the bank’s plans for a capital raise. “Finally, it is important to mention that the Bank’s Capital Raise Program will also commence in April 2025 with a N150bn Rights Issue,” he confirmed.